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Economic analysis of a grid-connected commercial photovoltaic system at Colorado State University-Pueblo

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  • Paudel, Ananda Mani
  • Sarper, Hűseyin

Abstract

The paper presents economic analysis of a 1.2 MW capacity grid-connected photovoltaic (PV) power plant installed at the Colorado State University-Pueblo, in December 2008. The project was commissioned by a regional utility company as per the renewable energy portfolio standards guidelines of the state. The system is installed on the customer's property funded by a third party investor. The investor will receive tax credits and rebates in addition to monthly revenue from the energy sales. Array efficiency is used to measure the performance of the PV system and predict the amount of energy generation and resulting cash flows. Based on the project investment, costs and revenues, an economic model of the project is proposed. Economic analysis of the PV installation is performed using Microsoft Excel 2007 and validated by the RETScreen software. It is identified that the cost of the PV system, financial assistance program, and energy pricing are crucial for the economic viability of PV project in addition to a favorable climatic condition. IRR of the project is 10.7% for the given tax credits and rebates. At least 4% tax credit is required to have a breakeven of the project. Different economic scenarios were analyzed, and price of the PV generated energy at different levels of tax credits and IRR is presented. This analysis is applicable to large size customers who want to invest in or own a PV plant in the US. The economical model could be applicable to other regions to devise investment option instruments. The current cost scenario presented in the paper provides readers a notion of cost improvement witnessed by PV system in last four years.

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  • Paudel, Ananda Mani & Sarper, Hűseyin, 2013. "Economic analysis of a grid-connected commercial photovoltaic system at Colorado State University-Pueblo," Energy, Elsevier, vol. 52(C), pages 289-296.
    • Handle: RePEc:eee:energy:v:52:y:2013:i:c:p:289-296
    DOI: 10.1016/j.energy.2013.01.052
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    15. Rehman, Shafiqur & Ahmed, M.A. & Mohamed, Mohand H. & Al-Sulaiman, Fahad A., 2017. "Feasibility study of the grid connected 10MW installed capacity PV power plants in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 319-329.
    16. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    17. Edalati, Saeed & Ameri, Mehran & Iranmanesh, Masoud & Tarmahi, Hakimeh & Gholampour, Maysam, 2016. "Technical and economic assessments of grid-connected photovoltaic power plants: Iran case study," Energy, Elsevier, vol. 114(C), pages 923-934.
    18. Seung Hyo Baek & Byung Hee Lee, 2019. "Optimal Decision-Making of Renewable Energy Systems in Buildings in the Early Design Stage," Sustainability, MDPI, vol. 11(5), pages 1-19, March.
    19. Ramli, Makbul A.M. & Twaha, Ssennoga, 2015. "Analysis of renewable energy feed-in tariffs in selected regions of the globe: Lessons for Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 649-661.
    20. Pillai, Gobind G. & Putrus, Ghanim A. & Georgitsioti, Tatiani & Pearsall, Nicola M., 2014. "Near-term economic benefits from grid-connected residential PV (photovoltaic) systems," Energy, Elsevier, vol. 68(C), pages 832-843.
    21. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2015. "Assessing the global sustainability of different electricity generation systems," Energy, Elsevier, vol. 89(C), pages 473-489.
    22. Ciprian Cristea & Maria Cristea & Dan Doru Micu & Andrei Ceclan & Radu-Adrian Tîrnovan & Florica Mioara Șerban, 2022. "Tridimensional Sustainability and Feasibility Assessment of Grid-Connected Solar Photovoltaic Systems Applied for the Technical University of Cluj-Napoca," Sustainability, MDPI, vol. 14(17), pages 1-23, August.
    23. Martinez-Rubio, A. & Sanz-Adan, F. & Santamaria, J., 2015. "Optimal design of photovoltaic energy collectors with mutual shading for pre-existing building roofs," Renewable Energy, Elsevier, vol. 78(C), pages 666-678.
    24. Cansino, J.M. & Cardenete, M.A. & González-Limón, J.M. & Román, R., 2014. "The economic influence of photovoltaic technology on electricity generation: A CGE (computable general equilibrium) approach for the Andalusian case," Energy, Elsevier, vol. 73(C), pages 70-79.

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